The Fed put explained

Steve Sosnick, Interactive Brokers’ chief strategist, discusses if he thinks the US Federal Reserve is exercising its “put.”

The basic idea behind a Fed put is that if the market gets too volatile, the US central bank will step in and calm things down with accommodative monetary policy.

Is Fed Chairman Jerome Powell doing the same with his recent openness to rate cuts? Check out the following video to find out what Sosnick has to say on the subject.

Photo Credit: bradhoc via Flickr Creative Commons